Consumer Packaged Goods (CPG) marketing campaigns often place primary emphasis on acquiring new customers, but retaining customers is just as important. Repeat purchases are critical to any CPG brand’s revenue and long-term growth. Besides offering a great product, how can CPG brands generate repeat purchases more effectively?
Repeat Purchases = Retained Customers
Retaining existing customers is less expensive and more lucrative than seeking out new customers. Research shows that repeat customers are profitable, often accounting for 40% of the revenue, because they spend more on each purchase. The most loyal 10% spend three times more per order than the lower 90%.
Each time a customer makes a purchase, the chance they will return and purchase again increases. By the fourth purchase, there’s a 56% chance the customer will return again. Increasing customer retention by just 5% can increase profits by 25 to 95%.
So turning first-time customers into repeat customers is a number game. If a brand can curate a connection, offer a good deal, or catch a new customer at an opportune time, it has the best chance to generate another sale. And every time a customer makes an additional purchase with a CPG brand, the likelihood of making another purchase increases. When a brand can effectively reach and entice these customers, it creates a positive feedback cycle.
Techniques for Generating Repeat Sales
CPG marketing teams struggle to connect with retail brick-and-mortar customers to increase repeat sales. This challenge is a glaring issue because large segments of the CPG industry are strongest in-store. For example, ‘nearly 95% of food and beverage sales and 90% of total grocery sales transact in-store’
But new research suggests digital channels can still connect with customers, in-store. Walmart reported that 82% of their shoppers use smartphones to check prices, deals, and loyalty points while grocery shopping. Here are the most effective digital marketing techniques to boost repeat sales:
Reminders on Replenishables
For customers who have purchased a replenishable consumer packaged goods, brands can reach out at the opportune time to encourage a repeat purchase. Imagine a customer that needs to purchase cat food monthly or dish detergent every three months. A brand can send a timely email reminding the consumer that their supply might be low and it’s time to reorder.
Post-Purchase Messaging
A brand also has opportunities to connect with a consumer after purchase through post-purchase messaging. A timely message a few days after a customer has received their items allows brands to ensure the customer is satisfied with the product. Brands can also provide additional value through informative or engaging content, like a makeup tutorial for the consumer that purchases a beauty product or recipes for the consumer that purchases new baking supplies.
Offerings in Transactional Emails
Transactional emails like shipping, order, and return confirmation have nearly 50% unique open rates. These open rates are often much higher than targeted marketing campaigns. Brands can use these emails as a way to increase repeat purchases by including relevant product recommendations and unique offerings and discounts.
Loyalty Programs & Rewards
CPG brands can support customer retention by developing interactive and immersive loyalty programs. Loyalty programs allow loyal customers to earn points towards meaningful rewards and incentives. Many brands miss the mark with boring content and lackluster rewards.
How does Abrio Encourage Repeat Purchases?
The above effective tactics all rely on brands connecting and reaching to their actual consumers. Abrio’s strategically placed QR codes, only revealed during consumption by real customers, provides brands with a solution to connect brick-and-mortar retail customers with larger marketing campaigns.
Abrio’s further CPG marketing solutions are largely centered on loyalty programs and rewards. By using interesting content and attractive rewards, first-time customers are more likely to participate. Participation in a brand’s content creates a sense of brand recognition and trust that converts into repeated purchases better than other forms of targeted marketing.